Lithia Motors, Inc. announced Sunday that it has agreed to buy DCH Auto Group Limited, a pairing that is expected to yield one of the country’s largest dealership groups. The deal is expected to close in the fourth quarter of 2014.
Lithia, an Oregon-based retailer that boasts over 100 stores located mainly in the Midwest, will acquire DCH’s 27 stores in New York, New Jersey, and Southern California, allowing Lithia to expand into the East Coast.
“For the past several years, we have been seeking a strategic partner to help us to enter the Eastern United States,” Lithia President and Chief Executive Bryan DeBoer said in a statement. “The DCH organization is an ideal fit with our existing team. We share similar strategic goals and core values, and have complementary strengths.”
Lithia will acquire 100% of DCH’s shares for an estimated price of $340 million and 300,000 shares of Lithia stock in the deal. Under the terms of the agreement, the New Jersey-based retailer will retain the DCH name and current management teams.
